At the turn of the century, several former bank regulators recognized the need for a technology solution that would enable banks across the country to connect, working together to offer services that were otherwise too difficult or too costly for each to offer individually — a network that would benefit all.
Since its founding, IntraFi’s services have helped banks to attract billions of dollars in deposits from thousands of businesses, nonprofits, government entities, and individuals. Billions of dollars have been channeled back into communities through local lending initiatives. Local lending initiatives have financed businesses, infrastructure improvements, municipal services, education, and other important activities. Such activities have created jobs and fueled economic growth across communities throughout the nation.
Prior to 2003, many large-dollar depositors, such as public entities, institutional investors, and nonprofits, were reluctant to deposit their cash at small banks because those deposits were only eligible for $100,000 of FDIC coverage; they feared losing money if their bank failed. In effect, small banks were often penalized for their size on the mistaken belief that small automatically meant risky.
This all changed with the launch of the first “reciprocal deposit” placement service — CDARS® — in 2003 with just 50 banks. Later, another such service called ICS®, launched in 2010. These two services, along with Insured Network Deposits® (launched in 2006 and now renamed IntraFi SweepSM) and Insured Overnight Funding® (launched in 2019), have changed the way financial institutions manage their balance sheets and access funding of all types and durations.
Today, IntraFi is home to the largest banking network of its kind and is a trusted partner —one chosen by more than 3,000 financial institutions over the years. Moving forward, IntraFi will continue to focus on innovation and bringing new ideas to help meet the evolving demands of the banking industry. The all-weather technology solutions we develop will continue to help banks of all kinds to meet their needs — no matter the environment.
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When deposited funds are exchanged on a dollar-for-dollar basis with other banks in IntraFi's network of financial institutions, your bank can use the full amount of a deposit placed through ICS and CDARS for local lending, satisfying some depositors’ local investment goals or mandates.
Deposit placement through IntraFi’s deposit placement services is subject to the terms, conditions, and disclosures in the program agreements. Limits apply and customer eligibility criteria may apply. ICS program withdrawals may be limited to six per month for money market deposit accounts. Deposits are placed at destination institutions in amounts that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination institution. Using multiple destination institutions provides access to aggregate insurance amounts across institutions that are multiples of the SMDIA. Although deposits are placed at destination institutions in amounts that do not exceed the SMDIA at any one destination institution, a depositor’s balances at the relationship institution that places the deposits may exceed the SMDIA (e.g., before settlement for a deposit or after settlement for a withdrawal) or be ineligible for FDIC insurance (if the relationship institution is not an insured depository institution). The depositor is responsible for making any necessary arrangements to protect such balances consistent with applicable law. If the depositor is subject to restrictions on deposits of its funds, the depositor is responsible for determining whether deposit placement through IntraFi’s services satisfies those restrictions. A list identifying IntraFi network banks may be found at https://www.intrafi.com/network-banks. The depositor may exclude particular insured depository institutions from eligibility to receive the depositor’s funds.